Hong Kong conglomerate CK Hutchison Holdings has reiterated that its controversial decision to sell a large portion of its global ports business—including key terminals on either side of the Panama Canal—will proceed only under strict legal and regulatory compliance. The assurance, issued through a public statement on May 13, was made in response to mounting pressure and scrutiny from both shareholders and global political actors.

At the centre of the issue is the company’s $22.8bn agreement with a consortium led by US asset manager BlackRock, which includes the sale of 43 port assets across 23 countries. Among these are the Balboa and Cristobal terminals in Panama—critical gateways that bookend one of the world’s most strategic trade corridors. While the deal excludes CK Hutchison’s ports in mainland China and Hong Kong, the focus on the Panama assets has turned a commercial transaction into a politically sensitive matter.

“The transaction could not and would not proceed under any unlawful or non-compliant circumstances,” CK Hutchison stated, adding that regulatory approvals from all relevant jurisdictions remain a condition for completion. The company also confirmed that the matter would be further addressed at its annual shareholders' meeting scheduled for May 22.

The emphasis on legality appears to be a direct response to the political fallout that followed the March announcement. In the United States, President Donald Trump publicly welcomed the deal, claiming, without basis, that the Panama Canal was under Chinese control and that the deal represented an American “reclamation” of the waterway. Trump’s narrative, though inaccurate, added pressure on the company, already caught in the crossfire of the US-China trade war.

From Beijing, the reaction has been notably less welcoming. Chinese state media, along with pro-Beijing politicians in Hong Kong, have slammed the move as a capitulation to US pressure. Ta Kung Pao, a prominent pro-China outlet, went so far as to accuse CK Hutchison of “betraying” Chinese interests. The Chinese government responded by launching a regulatory review of the deal through its market watchdog—a rare step considering the company’s base in Hong Kong and the lack of direct Chinese assets involved in the sale.

Analysts point out that the transaction makes business sense. CK Hutchison is set to receive around $19bn in cash—close to the market valuation of the entire group before the announcement. The sale also reflects the company’s long-standing shift away from mainland China, which now accounts for only a fraction of its revenue. For the group, divesting from politically sensitive assets may be a strategic move to reduce exposure to rising geopolitical risk.

Nevertheless, the timing and nature of the sale have amplified suspicions. China has increased its presence in Latin America through infrastructure investments and trade agreements, most notably through its Belt and Road Initiative. During a summit with Latin American leaders earlier this week, President Xi Jinping pledged $9bn in credit lines to the region and emphasised China’s support for “national sovereignty and resistance to external interference”. In that context, the Panama port sale was seen by some in Beijing as undermining those efforts.

The canal itself remains under Panamanian control and has been since 1999. However, the facilities that support it, such as CK Hutchison’s terminals, carry strategic significance. Around 3% of global seaborne trade passes through the waterway, including roughly 40% of US container traffic.

For CK Hutchison, the public reaffirmation of compliance aims to refocus the debate on legal due process and shareholder interests. Whether that will be enough to insulate the deal from further political disruption remains to be seen. But for now, the company appears determined to frame the transaction as a lawful commercial decision, not a geopolitical concession.